IAS 38 Question Help

seanyoungs

Currently studying for my AAT Level 4 Financial Statements exam, in a practice paper I have come across this question;

"The directors of Wentworth plc are reviewing their assets under IAS 38, Intangible Assets.

Prepare brief notes for the directors of Wentworth plc to answer the following points:

(a) What is the definition of an intangible asset?"

Is this question asking me for a word for word definition or would just saying something like "A non-physical asset" be ok?

Marshy77

You won't need a word for word definition, just get the main points across unless you can remember the whole definition. I'm currently studying FS too and we have been informed by our tutor about the definitions of assets, liability etc that if we can remember the defintion fully then great, if not just get the key elements of the definition to gain full marks.